Mace® Reports Financial Results For the Third Quarter of Fiscal 2013

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Nov 26, 2013, 09:30 ET

CLEVELAND, Nov. 26, 2013 /PRNewswire/ -- Mace Security International Inc., (OTCPINK: MACE) today announced financial results for the three and nine months ended September 30, 2013.

The Company's Chairman of the Board, Richard A. Barone, comments on the third quarter results and on the outlook for Mace in letter to Shareholders available on Mace.com http://corp.mace.com/investor-relations/shareholder-transcripts-presentations/ Letter to Shareholders.

2013 Third Quarter

The Company completed the integration of manufacturing, distribution, and Corporate Offices into one efficient facility in Cleveland, OH.
Revenue decline of approximately 11% mainly attributed to 39% decrease in Surveillance equipment revenues and $200k in orders pushed to the fourth quarter, reflecting one of the final stages of restructuring.
The company saw a (52) % increase in product sales to distributors servicing foreign embassies, correctional facilities, and law enforcement agencies.
Third quarter gross profit decline attributed to approximately $180k in one-time severance, and overall lower sales.
Loss from continuing operations increase of approximately $400k mainly attributed to one-time expenses associated with the move including severance and relocation / move related expenses.

"We have short-term pain for long-term savings," said John J. McCann, President and CEO of Mace. "The future holds tremendous possibility. We are encouraged by consumer trends."

Conference Call
Mace will conduct a conference call on Wednesday, November 27, 2013 at 2:00 PM EST, 11:00 AM PST. The participant conference call number is (877) 719-8065, conference ID: 17543062. Presentation materials for the conference call will be available Wednesday, November 27, on Mace's website under Investor Relations, Shareholder Transcripts & Presentations. There will also be access to a digital recording of the teleconference by calling (855) 859-2056 and entering the conference ID: 17543062. This will be available from two hours following the teleconference until December 27, 2013.

About Mace^® Brand
Mace Security International, Inc. (OTCPINK: MACE) is the manufacturer of personal defense products and markets such products and electronic surveillance products under the well known brand name Mace^®, and is the owner and operator of a wholesale central security monitoring station. Mace's web site is www.mace.com.

Contact Information: Mace Security International, Inc., 4400 Carnegie Avenue, Cleveland, OH 44139. Email to: [email protected]. John J. McCann, President and Chief Executive Officer, 440-424-5322.

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "projected," "intend to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.

Mace Security International, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)

ASSETS	September 30, 2013	December 31, 2012
Current assets:	(Unaudited)	(Audited)
Cash and cash equivalents	$ 676	$ 2,505
Short-term investments	2,453	2,397
Accounts receivable, net	1,560	1,288
Inventories, net	1,827	2,121
Prepaid expenses and other current assets	1,616	1,712
Assets held for sale	165	231
Total current assets	8,297	10,254

Plant and equipment, net	952	1,052
Other intangible assets, net	1,690	1,774
Goodwill	2,805	2,805
Other assets	82	703
Total assets	$ 13,826	$ 16,588
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Current portion of long-term debt and capital lease obligations	$ -	$ 26
Accounts payable and accrued expenses	1,447	1,734
Deferred revenue	68	77
Total current liabilities	1,515	1,837
Long-term debt and capital lease obligations, net of current maturities	1,074	981
Other liabilities	194	225
Total stockholders' equity	11,043	13,545

Total liabilities and stockholders' equity	$ 13,826	$ 16,588

Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended September 30, 2013 and 2012
(Unaudited)
(Amounts in thousands)


	2013	2012

Revenues	$ 3,018	$ 3,385
Cost of revenues	2,053	2,035

Gross profit	965	1,350

Selling, general, and administrative expenses	1,915	1,899
Depreciation and amortization	116	102

Operating loss	(1,066)	(651)

Interest expense, net	(39)	(43)
Other income	17	(6)

Loss from continuing operations before income tax provision	(1,088)	(700)

Income tax provision	-	-

Loss from continuing operations	(1,088)	(700)

Loss from discontinued operations, net of tax	(56)	(504)

Net loss	$ (1,144)	$ (1,204)

Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Nine Months Ended September 30, 2013 and 2012
(Unaudited)
(Amounts in thousands)

	2013	2012

Revenues	$ 9,090	$ 9,778
Cost of revenues	5,807	6,019

Gross profit	3,283	3,759

Selling, general, and administrative expenses	5,460	5,221
Depreciation and amortization	337	328

Operating loss	(2,514)	(1,790)

Interest expense, net	(126)	(142)
Other income	23	(4)

Loss from continuing operations before income tax provision	(2,617)	(1,936)

Income tax provision	-	5

Loss from continuing operations	(2,617)	(1,941)

Income (loss) from discontinued operations, net of tax	(17)	(576)

Net loss	$ (2,634)	$ (2,517)